West Australia's Canola Crop in `Good' Condition

By Madelene Pearson

Aug. 12 (Bloomberg) -- The canola crop in Western Australia state, the nation's biggest grower of the oilseed, is in ``good'' condition after rain last month, Rabobank Group said.

``July rains have left the Western Australian canola crop in good condition, with a bumper crop now looking more likely,'' the bank said today in a report. ``Canola crops in the eastern states and South Australia have also faired relatively well over the last month.''

Production of the oilseed in Australia, the world's third- largest canola exporter, may rebound 55 percent this harvest, up from last year's drought reduced crop, the Australian Oilseeds Federation said last month. Good conditions will need to continue in the lead-up to the harvest, Rabobank said today.

Canola futures for November delivery rose C$3.40, or 0.7 percent, to C$529.30 a metric ton on ICE Futures Canada, formerly the Winnipeg Commodities Exchange, at 2:17 p.m. in Sydney. Prices are up 29 percent in the past year.

Australia may produce 1.66 million metric tons of canola this harvest, up from 1.07 million tons a year earlier, the Australia Oilseeds Federation forecast on July 15. The nation's farmers start gathering their current crop in about November.

Canola crops in New South Wales, the nation's third-largest grower of the oilseed, are also in good conditions and are at early stages of flowering, GrainCorp Ltd., eastern Australia's largest grain handler, said today in an e-mailed report. It said last week canola crops in Western Australia are in ``excellent'' condition.

``West Australian growers are starting to look at selling'' canola, GrainCorp said today.

Canada is the world's largest canola exporter, followed by Ukraine and Australia, according to the U.S. Department of Agriculture.

To contact the reporter on this story: Madelene Pearson in Melbourne on mpearson1@bloomberg.net